Former Facebook & Nike Manager Sentenced In Fraud Case
A former leading executive at Facebook and Nike has been sentenced to more than five years in prison for defrauding the companies of over $5 million. Barbara Furlow-Smiles, 38, pleaded guilty in December to stealing from both corporations while serving as Lead Strategist, Global Head of Employee Resource Groups, and Diversity Engagement at Facebook.
According to the US Attorney's Office for the Northern District of Georgia, Furlow-Smiles had shamelessly abused her position of trust at Facebook to fund a lavish lifestyle in California, Georgia, and Oregon. During her time at the social media giant, she managed to steal more than $4.9 million using a sophisticated scheme involving fake invoices, fraudulent vendors, and cash kickbacks.
After being terminated from Facebook, Furlow-Smiles was hired by Nike as a diversity, equity, and inclusion leader, where she continued her fraudulent activities. She managed to swindle over $121,000 from the company before being caught. This raised questions about Nike's hiring and vetting processes for their executives.
Furlow-Smiles' scheme at Facebook involved using company credit cards to pay for personal expenses through PayPal, Venmo, and Cash App accounts. To cover her tracks, she would submit fake expense reports, claiming that her associates had provided services for Facebook when in reality, they did not. She also employed the help of friends, relatives, and other acquaintances to act as fake vendors and invoice the company for non-existent services.
The former executive used the stolen money to fund a luxurious lifestyle, including paying for specialty portraits for over $10,000 and tuition fees for her children's preschool for over $18,000. She also used the money to pay her personal assistants, nannies, hair stylist, and even her university tutor. These individuals would then send the money back to Furlow-Smiles, either electronically or in cash, wrapped in t-shirts.
Furlow-Smiles was ultimately caught and charged with fraud and money laundering. She pleaded guilty in December 2023 and has now been sentenced to five years and three months in prison, followed by three years of supervised release. She has also been ordered to pay back the stolen funds to both Facebook and Nike.
The repercussions of Furlow-Smiles' actions extend beyond the loss of funds for the two companies. She has also damaged her own reputation and career, having thrown away a lucrative position at Facebook and now facing a significant prison sentence. This case also raises concerns about the need for stricter background checks and internal control measures to prevent similar fraud cases in the future.
In response to the sentencing, US Attorney Ryan K. Buchanan stated that Furlow-Smiles' actions were a blatant violation of trust and that she had shamelessly exploited her position at Facebook for personal gain. FBI Special Agent Keri Farley also emphasized the severity of the situation, stating that Furlow-Smiles had not only jeopardized her career but also betrayed the trust of her colleagues and employers.
Furlow-Smiles' sentencing serves as a warning to other corporate employees who may be tempted to engage in fraudulent activities. Companies must prioritize implementing proper internal control measures to prevent and detect potential fraud. Additionally, individuals must remember that the consequences of fraudulent actions can be severe, affecting not only their own lives but also the reputation and financial stability of the companies they work for.